IT Industry Titans to Forego Salary Hikes in 2023: Report

The wait for compensation increases in the Indian IT industry appears to be getting lengthier. Aside from IT personnel receiving differing raises this year, reflecting the obstacles faced by a softer business environment, numerous big IT businesses have made disparate decisions regarding employee compensation increases.

Many IT behemoths have refused to raise their salaries

This time, Infosys and HCL Tech have decided not to implement raises, according to a report on TOI. Infosys typically announces wage increases in June or July, with the increases taking effect in April. This fiscal year, HCL Tech has agreed to forego increments for mid- to senior-level employees. It has delayed raises for younger employees by a quarter.Wipro has committed to increasing salaries, however, the announcement is expected in the third quarter (October-December) rather than September of the prior year. Tech Mahindra, on the other hand, has offered raises to junior and mid-level staff while deferring raises for senior positions by a quarter.

TCS: An Outlier in Salary Increase Payouts

TCS, India's largest IT giant, has offered an average rise of 6% to 8%, similar to last year, with double-digit increments for top performers. Coforge, Persistent Systems, and LTI Mindtree are among the mid-sized IT organisations that have announced compensation increases for their staff. These diverging approaches by IT companies mirror some of the industry's demand trends, particularly those largely reliant on the banking and financial services sector, which has been a brutal hit. For example, Infosys has witnessed adverse effects from the BFSI industry and has reduced its growth prediction for the 2023-24 fiscal year to a range of 1% to 3.5%, down from the earlier guideline of 4% to 7%.

Wipro's revenue also fell 2.8% sequentially in the June quarter. According to Wipro CEO Thierry Delaporte, businesses across several industries have reduced discretionary expenditure due to deteriorating macroeconomic conditions. According to the report, Wipro decreased its headcount by 9,000 in the June quarter.   "We have had a good wage increase cycle over the last couple of years, and given the macro uncertainty and cost inflation, we made this decision this year," HCL CEO and MD C Vijayakumar explained.